SUBSTITUTION BETWEEN WOOLS OF DIFFERENT FIBRE DIAMETER

The extent to which wools with different fibre characteristics can be substituted in textile production and consumption holds implications for Australia's international and domestic marketing policies. An analysis of price-induced substitution between Australian wools of different fibre diameters was conducted. Fibre diameter was used to parameterise cross-price relationships in order to estimate a system of demand equations for wools by diameter class. The results indicate that direct substitution takes place within a very limited range of fibre diameters. The use of product characteristics to parameterise price relationships may be extended to other graded commodities.


Issue Date:
1990-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/22499
Published in:
Australian Journal of Agricultural Economics, Volume 34, Number 1
Page range:
56-66
Total Pages:
11




 Record created 2017-04-01, last modified 2017-08-24

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